IndiGo names aviation heavyweight Willie Walsh as new CEO

* Walsh has led industry group IATA and British Airways

* Known for tough ​stance against ⁠unions and policymakers

* To join IndiGo by August 3

* Hiring ​will help international expansion, source says (Rewrites paragraphs 1,2,6,7 with context and quote from airline official, adds background in paragraph 13, adds bullet)

NEW DELHI, March 31 (Reuters) - IndiGo named industry veteran Willie Walsh as CEO on Tuesday, tapping the voice of the global airline industry from ⁠lobby group IATA to steer India's largest carrier out of a recent operational ⁠crisis and drive its overseas expansion.

The surprise appointment ​of Walsh, 64, was seen as a coup for the privately owned budget carrier after Pieter Elbers left following a scheduling meltdown that halted travel and drew regulatory scrutiny.

"For IndiGo to bring in Willie Walsh as its next CEO is a big move. It's a ​reflection of ‌the airline's stature in global aviation as well as India's rising importance," Kapil Kaul, CEO of aviation advisory firm CAPA India, said.

Walsh's term as head of the International Air Transport Association (IATA) ends on July 31 and he is expected to join IndiGo by August 3 at the latest, the airline said in a statement.

The decision to recruit one of the highest-profile industry figures comes ​as IndiGo is expanding its network with longer-distance Airbus A321XLR and A350 jets, a strategy that will require deep experience navigating access ‌to overseas markets.

"This is about more than fixing operational issues, it is about building and expanding an international identity," a senior industry source told Reuters.

COMBATIVE LEADER

Before joining IATA, Walsh built a ‌long career in commercial aviation, starting as a cadet pilot at Aer Lingus in 1979 before becoming its CEO in 2001.

He became CEO at British Airways in 2005, steering the airline through the global financial crisis and overseeing its 2011 merger with Iberia ​to create IAG.

Walsh earned a reputation as a combative leader during labour disputes at BA and later directed blunt criticism at governments over their handling of ‌the COVID-19 pandemic after taking charge of IATA in April 2021.

His hiring underscores IndiGo's growing prominence after it hosted the annual gathering of the $1 trillion global airline industry in New Delhi in 2025.

IndiGo holds about a 65% share of India's aviation market, the world's ⁠fastest-growing, but ⁠cancelled more than 4,500 flights in December in the biggest crisis in its 20-year history.

Regulators ‌later reprimanded several senior executives, including Elbers, citing "inadequate overall oversight of flight operations and crisis management".

IndiGo's shares are down 22% so far this year, making it ​one of the biggest losers on ​India's blue-chip Nifty 50 index. It is currently valued at 1.52 trillion rupees ($16.17 billion).

Co-founder and managing ‌director Rahul Bhatia has taken temporary charge of the airline following Elbers' departure.

IndiGo, like rivals, is facing higher costs as many flights are forced onto longer routes due to the war in the Middle East. Indian carriers also face Pakistani airspace restrictions.

International Airlines

Airbus